Shou Xiaoli:

Due to time constraints, we'll take the last question.

Phoenix TV:

We would like to inquire about the progress made by the PBC in recent years towards enhancing the openness of the mainland's financial industry to Hong Kong. Additionally, could you share how the new measures implemented by the PBC will further financial cooperation between the mainland and Hong Kong and integrate Hong Kong more effectively into the overall national development? Thank you.

Pan Gongsheng:

Thank you for your questions. Over the past few years, the PBC, along with relevant Hong Kong institutions, has consistently worked towards implementing major projects annually. The high-level opening up is a fundamental national policy. Hong Kong is a major international financial center, the world's largest offshore RMB market, and a crucial asset management and private wealth management center in Asia. The PBC has consistently supported the development of Hong Kong as an offshore RMB hub, promoting high-level openness of the mainland's financial industry to Hong Kong and safeguarding Hong Kong's status as an international financial center and its long-term prosperity and stability.

In recent years, the PBC, in collaboration with mainland financial regulatory authorities, has initiated and continuously refined programs such as the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connects, the Bond Connect program, the Cross-boundary Wealth Management Connect, and Swap Connect. These programs make it much easier for international investors to manage mainland stocks and bonds in Hong Kong. Similarly, they provide Hong Kong residents with convenient access to mainland wealth management products.

To further advance the high-level openness of the financial sector of the Chinese mainland, deepen financial cooperation between the mainland and Hong Kong, and solidify and enhance Hong Kong's status as an international financial center, the PBC and the Hong Kong Monetary Authority (HKMA), building on thorough preparatory work, have decided to introduce six policy measures. Now, I invite Xuan Changneng, vice governor of the PBC, to elaborate on these six measures. Mr. Xuan oversees international business at the PBC. 

Xuan Changneng:

Now, I will detail the six measures aimed at deepening financial cooperation between Hong Kong and the mainland. The PBC and the HKMA have jointly launched six financial measures, including various aspects such as financial market interconnection, cross-border capital facilitation, and the deepening of financial cooperation. These measures can be summarized as "three connections and three conveniences."

Specifically: First, RMB bonds under the Bond Connect program will be deemed eligible collateral for the HKMA's RMB Liquidity Facility. Second, there will be a further opening up for foreign investors to participate in the onshore repurchase agreement market, supporting all foreign institutional investors that have entered the inter-bank bond market to engage in bond repurchasing, including through the Bond Connect channel. Third, detailed implementation guidelines for optimizing the Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) will be released to expand and facilitate individual investment channels in the GBA. Fourth, policies will be implemented to facilitate measures on the remittances for property purchases by Hong Kong and Macao residents in the mainland cities in the GBA to better meet the housing needs of residents. Fifth, the scope of pilot projects for collaboration on cross-boundary credit referencing between Shenzhen and Hong Kong will be expanded to facilitate cross-boundary financing for Shenzhen and Hong Kong enterprises. Sixth, the cross-boundary e-CNY pilot zones will be expanded to bring more convenience to Hong Kong and mainland residents and enterprises.

Next, the PBC will closely collaborate with the mainland and Hong Kong financial management departments to jointly promote the implementation of these policies, further optimize financial services, strengthen financial cooperation, and support the continued development of Hong Kong as an international financial center. Thank you.

Pan Gongsheng:

In preparation for the policy measures just announced by Mr. Xuan, the PBC, along with relevant mainland financial management departments and the HKMA, has undertaken substantial preparatory work. Some of the policy documents for these measures will be released later this evening by the PBC and the HKMA in coordination with other relevant departments.

As the Chinese Spring Festival is approaching, with fewer than 20 days to go, I would like to take this opportunity to extend my warmest wishes to all the reporters and your family members for a joyful, prosperous, and healthy Chinese New Year! Thank you all.

Shou Xiaoli:

Thank you to all the presenters, and thanks to all the reporters for your participation. That concludes today's press conference.

Translated and edited by Xu Xiaoxuan, Wang Qian, Zhu Bochen, Wang Yiming, Mi Xingang, Liu Sitong, Qin Qi, Huang Shan, Gong Yingchun, He Shan, Liu Jianing, Yuan Fang, Wang Ziteng, Ma Yujia, Yan Bin, Wang Wei, Zhang Rui, Li Huiru, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.